7 Ways to Measure the Success of Employee Training

Did you know that companies with comprehensive training programs have 218% higher income per employee compared to those with less comprehensive training?

However, in the complex procurement and supply chain management space, measuring employee training success can be a challenging task. You've invested time, resources, and effort into developing your team's skills. But, how do you know if it's paying off? 

Assessing employee training metrics is crucial to ensure that your investment translates into tangible business outcomes. Whether you're looking to boost productivity, improve decision-making, or enhance overall performance, understanding the right metrics can make all the difference.

In this article, we'll explore seven powerful ways to measure employee training. These methods will help you gauge the effectiveness of your programs, identify areas for improvement, and demonstrate the real value of training.

1. Track Employee Performance Improvements 

Knowing how to measure the success of employee training begins with understanding the direct correlation between training and performance improvements in daily tasks. When employees receive targeted training, they're equipped with the skills and knowledge they need to enhance their job performance. 

To effectively measure employee performance improvements, consider the following strategies:

• Establishing baseline KPIs: Before any training program, identify relevant KPIs that reflect employee performance. These could include employee training metrics such as sales figures, error rates, customer satisfaction scores, or productivity levels. By establishing a baseline, you create a reference point to measure future performance.
• Conducting post-training assessments: After the training is completed, reassess the same KPIs to assess improvements. This comparison will provide clear evidence of progress and highlight areas where employees have excelled or may need further development.
• Employee assessments: Regular assessments can be instrumental in tracking performance improvements over time. These assessments can take various forms, such as quizzes, practical evaluations, or self-assessments that allow employees to reflect on their learning experiences. Incorporating these tools into your training program not only measures knowledge retention but also reinforces learning through practice.
• Setting measurable goals: As part of the training program, it's essential to set specific, measurable goals for employees. Using the SMART criteria—Specific, Measurable, Achievable, Relevant, and Time-bound—ensures that goals are clear and attainable. For example, instead of a vague goal like "improve supply chain efficiency," specify "increase supply chain efficiency by 10% within three months post-training." This clarity helps employees understand expectations and provides a tangible target to strive for.

2. Evaluate Employee Engagement and Participation 

Employee engagement during training is a crucial indicator of its success. High engagement levels often lead to better knowledge retention and application in the workplace, making it an essential metric to track.

One key measure of engagement is the course completion rate, which reflects the percentage of employees who finish the entire training program. Low completion rates may indicate issues with course content or delivery methods. Participation rates, such as attendance in training sessions and interaction in discussions, also provide valuable insights into learner engagement. These employee training metrics can help identify which aspects of the training are most effective and which may need refinement.

3. Measure Employee Retention Rates 

Employee retention is a powerful indicator of employee training success. When you invest in your team's development, you're not just enhancing their skills—you're demonstrating your commitment to their growth and success.

Studies show that companies that prioritize comprehensive training enjoy significantly higher retention rates. For instance, a recent LinkedIn Learning report shows 94% of employees stating they would stay longer at a company if it invested in their learning and development.

Medicus are an example of a business that implemented an upskilling program to address increasing turnover. This incentive resulted in a 50% improvement in retention rates. Retail giant Amazon runs multiple employee training programs under the Amazon Technical Academy, which trains front-line employees for technical roles. This investment in employee development has contributed to their ability to retain and grow talent internally.

It's not only more effective but also significantly cheaper to retain employees than to hire new ones. The Society for Human Resource Management estimates that the average cost to replace an employee is 6 to 9 months of that employee's salary. For an employee making $60,000 annually, this translates to $30,000 to $45,000 in recruitment and training expenses.

4. Assess Knowledge Retention Through Post-Training Tests 

Post-training tests and quizzes are excellent tools for measuring knowledge retention. These assessments provide concrete data on how well employees have absorbed and internalized the training material.

Assessing knowledge retention involves looking at both short-term and long-term retention. Short-term retention, measured immediately after training, indicates initial understanding. Long-term retention, assessed weeks or months later, reveals how well knowledge has been integrated into daily practices.

Tracking both types of retention offers insights into the training's effectiveness and highlights areas that may require reinforcement. To enhance long-term retention, consider implementing spaced learning techniques. This approach involves revisiting key concepts at increasing intervals over time, which has been shown to significantly improve knowledge retention and application in the workplace. 

5. Monitor ROI of Employee Training Programs 

Calculating the Return on Investment (ROI) of employee training is crucial for measuring employee training success and justifying the training resources. By quantifying the impact of training programs, you can make data-driven decisions to optimize your learning and development strategies.

To calculate training ROI, use this simple formula:

ROI (%) = [(Productivity Gain – Training Cost) / Training Cost] * 100

For example, if a training program costs $20,000 and results in a productivity gain of $50,000, the ROI would be:

ROI = [($50,000 – $20,000) / $20,000] * 100 = 150%

This means the company earned $1.50 for every dollar invested in training.

When monitoring ROI, it's important to consider both tangible and intangible benefits:

Tangible benefits: Increased revenue, reduced costs, improved efficiency.

Intangible benefits: Enhanced employee engagement, improved morale, reduced turnover.

While ROI is a valuable metric, it should be considered alongside other factors such as employee satisfaction and long-term skill development. By taking a holistic approach to measuring training success, your business can implement more effective and impactful learning programs that drive business performance and employee growth.

6. Solicit Employee Feedback and Satisfaction 

Employee feedback, gathered through post-training surveys and Net Promoter Scores, offers direct insights into learner satisfaction and the perceived value of the training. This feedback can be incredibly useful in tailoring future training initiatives to better meet employee needs and expectations.

Other effective methods to collect employee feedback include:

• One-on-one interviews: These provide a more personalized approach and allow employees to share honest opinions about the training in a private setting. This method is particularly useful for discussing sensitive matters or gathering in-depth feedback.

• Focus groups: Bringing together small groups of employees can generate diverse perspectives on the training program.

When designing your feedback collection process, consider asking questions such as:

• Did you find the training material helpful and relevant to your role?
• Was the pace of the training comfortable for you?
• Do you feel confident in applying the skills you learned?
• What aspects of the training did you find most valuable?
• Are there any areas you think should be improved or added to the training?

7. Track Post-Training Behaviour and Application

Measuring employee training success extends beyond eLearning videos—it's also important to monitor how your employees' newly acquired skills and knowledge are applied in the workplace. 

To effectively track post-training behavior:

• Conduct regular performance reviews that specifically address skills covered in training.
• Encourage managers to observe and document instances where employees apply new knowledge.
• Implement peer feedback systems to capture collaborative improvements.
• Use project management tools to track productivity and quality metrics related to trained skills.

Because behavior change often occurs gradually, seek to track progress over time by looking for consistent improvements instead of immediate transformations. By identifying areas where employees successfully implement their training, you can reinforce positive changes and address any gaps in application.

Measuring the Success of Employee Training

Tracking employee improvement metrics and employee engagement throughout your training initiatives is a surefire way to measure employee training effectively. Assessing employee knowledge retention and calculating the ROI of your training programs is also essential to ensure employee training success.

Ready to optimize your employee training initiatives? Take the next step towards building a more skilled and competitive workforce with a personalized approach to maximizing your training ROI. Visit Skill Dynamics' training catalog page to explore our comprehensive Procurement Training and Supply Chain Training solutions and develop your team's full potential.